Some Good Financial News

Some Good Financial News

By Martha Randolph Carr

When times are hard or at least complicated sometimes it makes sense to go ask the advice of someone who's seen it all before or who's still doing well. Fortunately, Seth Glickenhaus at 94 years old is both and was willing to take a few questions.

Glickenhaus and Co., the equity management company based in New York City has been consistently ranked in the top five in returns, including this very interesting year and his group is considered by many to be the foremost money management team in the world. The company invests about $1.5 billion and will take new accounts starting at $100,000. Glickenhaus and Co. also has a long history of supporting causes and in particular education and public health and through the foundation gives to over 700 different groups.

But enough with the background; we're all here to find out what to avoid in the stock market and where to put whatever investment money we might have left at this point. Let's pull of the band-aid in one quick gulp and get the bad news over with first.

None of this is going to come as a surprise. Glickenhaus advises avoiding investing in the current market in housing, auto, airline, or brokerage stocks or bonds from municipalities. Not only have they taken body blows lately but the downturn is probably not yet complete.

But there are some bright areas of news, according to Glickenhaus. First of all, for the first time in history, the U.S. and other nations are spending trillions to straighten out the economy, said Glickenhaus, 'because our public officials live for two overwhelming reasons. One, to stay out of jail, and two, to be reelected. They will do everything they can to reduce the depth and duration of the recession.' At the beginning of the Great Depression the Hoover administration hesitated and did nothing, which many believe made the downturn far worse.

Also, China and India are not going into a recession. Their growth rates are going to be diminished but they will still have an uptick. The same will be true for a few other countries in '09, despite a general depression.

However, although the U.S. is not on that list there is a way that the new administration could solve two problems in one package that has already been rumored to be part of the Obama team's new plan. Glickenhaus suggests spending money on the repair of the country's long-neglected infrastructure. A lot of public works are in disrepair from years of politicians putting off spending money in that realm.

Badly needed repairs would also put a lot of Americans back to work and pour money into the economy through jobs rather than a bailout. 'Bush bought ammunition, which was valueless to us. Repairing the infrastructure, courts, hospitals, schools, bridges, is not just creating jobs but creating real assets to us,' said Glickenhaus.

As for investing in stocks, Glickenhaus notes, the market was pounded down to an absurd degree by the media and the dramatic number of failures but is now at a low. Time to invest but as always with some caution.

'One of the groups that I feel will do very well,' said Glickenhaus, 'is pipeline stocks that transport oil, natural gas, liquid gas from producing areas to areas where they can be distributed to the public. Even in a recession or depression people will continue to light and heat their homes, heat the water, use power for cooking and drive their automobiles.'

Three stocks he recommends as a buy are: Enterprise Products or EPD, Boardwalk Partners or BWP and Energy Transfer Equity or ETE. Glickenhaus notes that all three limited partnerships that are listed on the NYSE have yields of about 10 to 11 percent per annum. 'I feel these stocks can appreciate considerably since they are down substantially from their highs and with good prospects for increasing in their distributions,' said Glickenhaus.

Martha Randolph Carr's latest book, A Place to Call Home, a memoir about the reemergence of U.S. orphanages is available wherever books are sold. Martha will be appearing at the United Way in Canton, Ohio on January 27th. Open to the public. If you'd like Martha to come and speak to your group visit: www.newvoicespeakers.com. Martha's Big Adventure coming soon to World Talk Radio and Voice America. Email Martha at: Martha@caglecartoons.com or visit www.martharandolphcarr.com.